/r/50501 Mirror

Probably not, because 401Ks often only offer a limited selection of mutual funds, and it's unlikely that something like a "total stock market ex-Musk" fund exists at all, let alone is available to choose.

You could invest only in asset classes other than US stocks (e.g. international stocks, bonds, REITs, etc.) and divest from Musk that way, but that would severely screw up the usually-recommended portfolio balance.

You could also have a qualifying event (like changing jobs) and roll your 401k into an IRA where you'd have more control. But even then it would be complicated to divest from Musk companies because you'd need to either forego mutual funds and buy hundreds of individual stocks, or short Musk's stocks to cancel out the holdings within the funds (and that's got some "gotchas" to it because short and long positions aren't as equivalently opposite as they seem).

And finally, even if somebody did make a "total stock market ex-Musk" mutual fund, it would probably have an expense ratio a lot higher than something like VTSAX and thus be a drag on your portfolio returns that way, even disregarding any effect of Musk companies' performance.

Full disclosure: I recently reallocated my portfolio to more heavily favor international stocks because of sovereign risk associated with Trump, but I did not attempt to divest from Musk in my remaining US index fund holdings despite the fact that, ideally, I'd like to.

There are usually a few options within 401k plans. However, broad market index funds or ETFs are as stated broad market and therefore generally have a little of everything big in the stock market including tesla SpaceX, etc.

Sometimes, but there's often a fee associated with picking and choosing your own investments instead of letting them handle it all.